Investing in S EE – OMV´ s Approach for the Region
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Transcript of Investing in S EE – OMV´ s Approach for the Region
OMV Gas
Move & More.
Investing in SEE – OMV´s Approach for the Region
Athens, November 3rd, 2005
2 |OMV Gas, Michael Woltran, November 3, 2005
Investing in SEE – OMV´s Approach for the Region
OMV´s strategic development path
Materializing OMV´s strategy
Preconditions and environmental requirements
3 |OMV Gas, Michael Woltran, November 3, 2005
OMV Strategy 2010
OMV is the most successful company in capitalizing on the EU „growth belt“ in oil and gas and securing the future supply through a strong upstream position.
4 |OMV Gas, Michael Woltran, November 3, 2005
OMV Develops Along the EU Growth Belt
Mature Markets East- EuropeanGrowth Belt
Expand from mature into growing markets
Increase the lead to other regional competitors
Further boost profitability potential
Continued growth
5 |OMV Gas, Michael Woltran, November 3, 2005
Petrom Acquisition in December 2004
OMV acquired 51% of Petrom with immediate control 33.34% of Petrom from Government for EUR 669 mn Increased to 51% via simultaneous issue of new shares
for EUR 830 mn Capital increase remains in Petrom for future CAPEX
Government indemnity for historic contamination Agreement provides scope for rationalisation Contractual fiscal stability in upstream Petrom’s new shareholder structure
State40.74%
EBRD2.03%
Free Float6.23%
OMV51.00%
6 |OMV Gas, Michael Woltran, November 3, 2005
Petrom – A Perfect Strategic Fit
Bulgaria
Arpechim3.5 mn t Petrobrazi
4.5 mn t
Serbia
Romania
New refining capacity in the East of D-13
Daily oil and gas production of 217,000 boe/d (6m/05)
50% oil – 50% gas Oil and gas reserves of 1,025 mn boe
(Dec. 31, 2004) 60% oil – 40% gas
670 retail stations Market share in Romania >30%
Through the acquisition of 51% of Petrom, OMV became the undisputed leading integrated oil and gas group in Central and Eastern Europe
Gas Sales of around 6 bcm (2005 estim.) 35 % of Romania´s primary energy consumption
covered by natural gas Increasing demand (from18,5 bcm in 2005 to 20,5 bcm
in 2015)
7 |OMV Gas, Michael Woltran, November 3, 2005
Nabucco - Project Partners
OMV - OMV Gas GmbH, Austria
MOL- MOL Natural Gas Transmission Ltd., Hungary
Transgaz- S.N.T.G.N. Transgaz S.A., Romania
Bulgargaz- Bulgargaz EAD, Bulgaria
BOTAS- Botas Petroleum Pipeline Corporation, Turkey
8 |OMV Gas, Michael Woltran, November 3, 2005
Nabucco Gas Pipeline Project Strategic Goals of Project
Opening a new gas supply corridor for Europe from Middle East and Caspian regions
Raising transit profiles of participating project countries
Contribution to security of supply for partner countries and for Europe as a whole
Strengthening the turntable position of Austrian pipeline grid and the Hub Baumgarten within the European network
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2008 2009 2010 2011 2012 2013 2014 2015 2016
Feasibility Study Phase – Findings Technical Study
3,300 km + Compression
Capacity: up to 25.5 bcm
Construction
O p e r a t i o n
10 |OMV Gas, Michael Woltran, November 3, 2005
Nabucco Gas Pipeline Project Next Steps Within the Development Phase
Prequalification for Tender process for the Basic and Detail Engineering
Working program for EIA/SIA together with IFC, EBRD, EIB
Application for exemption to safeguard the economics of the project on the basis of EU Directive and / or ECSEE Treaty
Extension of the Nabucco Consortium by one or more additional shareholder
Start of negotiations transportation contracts
11 |OMV Gas, Michael Woltran, November 3, 2005
Key Success Factors for Investments in SEE (1)
Harmonize legal framework in SEE To reach a sound investment climate in the region To establish a common European framework – jointly
approach for all EC 25
Stabile and predictable investment conditions Long term investments in infrastructure projects need
sufficient reliability for the investors- clear definition of interest rate level to safeguard the
economics of the project- security about negotiation principles and -structure
Exemption and Intergovernmental Agreement
12 |OMV Gas, Michael Woltran, November 3, 2005
Key Success Factors for Investments in SEE (2)
Complex transformation process of societies in SEE Alignment of the former communist society systems –
democratization and privatization – to the EC legal system in all areas
Cooperation to create win-win-situations Investments in SEE economies Modernization of existing / creation of new infrastructure Enhance integration of EC energy market – new transit
routes Increase security of supply